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New Dimension Resources Ltd. (TSXV: NDR) (the "Company" or "New Dimension") is pleased to report that it has executed an option agreement (the "Agreement") to acquire a 100% interest in the 8,352 hectare Savant Lake gold property (the "Property") located approximately 240 kilometres northwest of Thunder Bay, Ontario in the Savant Lake Greenstone Belt.
"The Savant Lake gold project covers a classic iron formation hosted system of gold occurrences within a very prospective mineral district in Ontario," said Fred Hewett, President & CEO of New Dimension. "The Property, which has not been significantly explored since the early 1980's, has seven known gold occurrences that have yielded high grade gold values up to 138.87 g/t from surface prospecting. New Dimension was attracted to the Savant Lake Property for its gold in iron formation characteristics that it believes are analogous to Goldcorp's neighbouring Musselwhite gold mine and Agnico Eagle's newly discovered Amaruq deposit in Nunavut. The Company's initial exploration program will include an airborne geophysical survey designed to rapidly delineate targets for future drilling."
Please click the following link to view a location map of the Savant Lake gold property:
The Savant Lake Gold Project
The property is situated within the Archean age Savant Lake Greenstone Belt and is underlain primarily by greywacke, interbedded with cherty magnetite iron formation and minor mafic volcanics. These rocks have been metamorphosed and complexly folded such that the iron formation horizons have been repeated (as shown by magnetic surveys). There is an interpreted cumulative strike length of 60 kilometres of prospective iron formation.
There are seven historical gold showings on the property and all but one are spatially related to oxide facies iron formation. The setting of the gold showings is quite similar being hosted in mixed iron formation and adjacent pyritic metasediments with or without quartz veins and carbonate alteration. Two of the gold showings were tested by shallow drilling in the 1980's and returned values of 0.3 to 0.5 oz/t gold (8.5 g/t to 14.17 g/t) over narrow widths of 1.0 to 1.4 feet (0.3 metres to 0.43 metres). Trenches over the western drilled area exposed mixed oxide facies iron formation and clastic metasediments, which are host to pyrite and arsenopyrite mineralization as well as quartz veining and ankeritic alteration. During a recent program, a total of 57 samples were taken by the Property vendors over these showings with values ranging from 138.87 g/t gold to 0.005 g/t gold. In total, 35 samples reported grades exceeding 1.0 g/t gold including 11 samples exceeding 20 g/t gold.
The known showings are locally covered by shallow overburden, but more than 90% of the interpreted, iron formation horizons do not outcrop. Available magnetic data indicates that strong folding of the iron formations has occurred with the development of multiple steeply plunging fold hinges. Examples of fold hinges hosting important mineralization include the past producing Lupin and Homestake mines. In addition the setting of the Savant Lake gold occurrences shows many similarities to a number of other significant iron formation hosted gold deposits including Goldcorp's Mussewhite Mine, Agnico Eagle's Meadowbank Mine and its recently discovered Amaruq deposit. A priority objective of the Company's program will be to identify gold bearing sulfide bodies contained within favourable depositional environments developed in iron formation stratigraphy. These sulfide rich targets lend themselves to a modern VTEM survey, which has never been completed and could help delineate and prioritize targets for drilling within this largely unexplored greenstone belt.
The Savant Project consists of 40 contiguous staked claims (522 units) covering 8,352 hectares and is situated approximately 240 kilometres northwest of Thunder Bay in northwestern Ontario. The Property is accessible by an all-weather road (provincial highways 17 and 599) and is within 25 kilometres of the Canadian National Railway's main line. Physiography is typical of the Canadian Shield with almost flat, tree-covered terrain interspersed with muskeg and lakes.
New Dimension can earn a 100% interest in the Savant Lake Property by paying the vendors C$100,000 and issuing 600,000 shares of New Dimension over a four year period. These payments can be accelerated at the option of the Company, with no cash payments due in the first year. The Property is subject to a 2% NSR, of which one percent (1%) can be purchased for C$1,000,000.
The Company also announces a non-brokered private placement of up to 4 million Units at a price of $0.09 per Unit. Each Unit shall be comprised of one common share and a one half warrant. Each full warrant will entitle the holder to acquire one common share of New Dimension at a price of $0.20 for a period of 24 months immediately following the closing date. The warrants will be subjected to an accelerated exercise provision if the share price of New Dimension trades at or above $0.45 for 10 or more consecutive trading days.
Net proceeds of this private placement will be used to further the Company's exploration projects, fund possible new acquisitions and for general working capital.
About New Dimension Resources Ltd.:
New Dimension is engaged in the acquisition, exploration and development of quality mineral resource properties throughout the Americas with a focus on potential bulk tonnage gold and silver deposits. The Company is currently focused on mineral projects in Canada with a priority directed toward the Savant Lake gold property. New Dimension also holds a 30% interest in a joint venture with Yamana Gold Inc. on the Domain Gold property in northern Manitoba as well as an option to earn a 70% interest in the Midas gold property, located in north central Ontario.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Fred Hewett the Company's President & CEO, a director and a Qualified Person under NI 43-101.
ON BEHALF OF THE BOARD
NEW DIMENSION RESOURCES LTD.
"Fred G. Hewett"
Fred G. Hewett, P.Eng.
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release may contain forward looking statements which are not historical facts, such as statements of belief of similarity of geological characteristics or features, statements of unverified drilling and sampling results and expectations of receipt of permits and plans for future work. Forward looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, unexpected geological factors, exploration results, results of verification work and unanticipated regulatory obstacles. See New Dimension's filings for a more detailed discussion of factors that may impact expected results.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.